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Sizewell C Consortium urges decision on funding

Tuesday, 14 July 2020

A group of 32 companies and organisations from the UK nuclear supply chain have formed a consortium to encourage the government to support a state-guaranteed financing model for Sizewell C, the proposed new nuclear power plant on the Suffolk coast. The Sizewell C Consortium said today it intends to sign agreements that ensure 70% of the project's construction value would go to UK companies.

The group comprises 32 companies and organisations from the UK nuclear supply chain (Image: Sizewell C Consortium)

EDF and China General Nuclear are 80% - 20% shareholders in the pre-construction phase of Sizewell C. Their application for a Development Consent Order is being examined by the Planning Inspectorate.

Cameron Gilmour, spokesperson for the Sizewell C Consortium said: "The Sizewell C supply chain is ready and willing to help government with the green economic recovery. A firm commitment on the future of Sizewell C will help sustain the nuclear supply chain and can deliver significant benefits to the UK’s low-carbon economic prosperity."

Sizewell C will be a near replica of Hinkley Point C (HPC), which EDF Energy is building in Somerset and, like HPC, it will be able to supply 7% of the UK's electricity once it enters commercial operation. EDF and CGN respectively own 66.5% and 33.5% of HPC.

At about GBP18 billion (USD22 billion), EDF Energy has said that Sizewell C will be cheaper to build than HPC, the estimated cost of which is between GBP21.5 billion and GBP22.5 billion.

HPC is being financed by EDF and CGN, with a contract-for-difference (CfD) already agreed with the UK government to provide long-term price stability for the generator once the plant begins generating (but leaving construction and operating risk with the investors). The CfD model was seen as appropriate as HPC was the first new nuclear project to begin construction in the UK for a generation.

The government is considering a regulated asset based (RAB) model for Sizewell C that EDF Energy says would reduce the cost of new nuclear power plant projects by having consumers pay upfront through their energy bills. The government said last year that the RAB model had the potential to reduce the cost of raising private finance for new nuclear projects. In its statement today, EDF Energy said the Sizewell C project will aim to be majority owned by UK investors.

The Sizewell C Consortium consists of: Doosan Babcock, Laing O’Rourke, Atkins, Jacobs, Unite, Prospect, GMB, Mott MacDonald, Mace, Cavendish Nuclear, Balfour Beatty Bailey, Arup, Agilia Infrastructure Partners, Assystem, 3DS, GE Steam, William Hare Group, Bilfinger, Opergy Group, Altrad, Darchem Engineering, Caledonian Modular, Trillium Flow Technologies, Vessco Engineering, East of England Energy Group, Wales Nuclear Forum, Teddington Engineered Solutions, RSK Group, Ovivo, Spring, Structural Soils and Nuvia.